Prior Loans, Future Pain?

Bank Lending Jumps,
Providing a Cushion,
But Outlook Isn't Good

Since midsummer, bank lending to businesses has risen at the fastest rate in more than 30 years, providing a cushion for the economy as lenders cut back on mortgages and other forms of loans.

But the lending outlook doesn't look nearly as promising, in part because of billions of dollars in losses they have recorded and because some lending was forced on them because of commitments made before the recent turmoil. If banks cut back, it...